At January 1, 2016, Hilltop Flagpoles had Accounts Receivable of $27,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, HilltopHilltop Flagpoles recorded the following:

a.	Sales of $ 183 comma 000$183,000 ($ 164 comma 000$164,000 on account; $ 19 comma 000$19,000 for cash). Ignore Cost of Goods Sold.
b.	Collections on account, $ 135 comma 000$135,000.
c.	Write-offs of uncollectible receivables, $ 2 comma 800$2,800.

1.	Journalize Hilltop'sHilltop's transactions that occurred during 2016. The company uses the allowance method.
2.	Post Hilltop's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3.	Journalize Hilltop's adjustment to record bad debts expense assuming Hilltop estimates bad debts as 22% of credit sales. Post the adjustment to the appropriate T-accounts.
4.	Show how Hilltop Flagpoles will report net accounts receivable on its December 31, 2016 balance sheet.

Answer rating: 100% (QA)

1 Transaction occurred in 2016 should be journalized ... View the full answer